Simplistic Definition: ‡ Enterprise Resource Planning Detailed Definition: ‡ Software solution that addresses the enterprise needs taking the process view of organization to meet the organizational goals tightly integrating all functions of an enterprise.

‡ It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. ‡ Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise wide system environment

ERP ± Key Characteristics
‡ Integration:
Seamless integration of all the information flowing through a company ± Financial and accounting, human resource information, supply chain information and customer information.

ERP ± Key Characteristics
‡ In depth BPR study to be done before taking up ERP ‡ BPR brings out deficiencies of the existing system. ‡ ERP maximizes the benefits from the BPR observations.

Re-Engineering ± a part life with ERP
‡ Re-engineer process before going for ERP ‡ Re-engineer during implementation of ERP ‡ Re-engineer after implementing ERP ‡ Continuous re-engineering through ERP.

ERP Selection
‡ Check whether all functional aspects of business are duly covered. ‡ Check whether all business functions and processes are fully integrated. ‡ Check whether the vendor has customizing & Implementing capabilities. ‡ Check your purse and calculate ROI

How do we start for ERP ?
‡ Ensure the management is behind you. ‡ Ensure that enough financial funds. ‡ Evaluate and select ERP package ‡ Jointly make an implementation plan. ‡ Present plan to employee groups for feedback

ERP ± Define Requirements
‡ Check whether you have desired hardware ‡ Train ERP team ‡ Analyze the existing process. ‡ Prototype and present. ‡ Refine the prototype & Freeze the Specifications

ERP Implementation Time

Major ERP vendors 
SAP R/3 Oracle ( People soft and JD Edwards were
independent ERP venders earlier, but are subsets of Oracle now ) People soft JD Edwards 




SAP AG ± At a Glance 
Founded in Germany in 1972  Market Leader in Industrial Enterprise Application (IEA) 
About 56% market share in the ERP market 

Worldwide presence in over 50 countries 
18,000+ employees  Trained consultants doubled since 1996 (40,000) 

About 20,000 companies in 120 countries 
Around 64,500 installations of SAP 

Strength lies in its high degree of integration, mainly for large, global corporate enterprises  Significant presence in Global Fortune 500 companies



SAP R/3 : 3 Tier Architecture
The Presentation Layer Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer.

The Application Layer Those SAP R/3 software components that specialize in processing business applications form the Application Layer.

The Database Layer Those SAP R/3 software components that specialize in the management , storage and retrieval of data form the Database Layer


SAP R/3 : 3 Tier Architecture
Application Layer components reside in: Database Layer components reside in:

Presentation Layer components reside in:

Presentation servers: Systems capable of providing a graphical interface.

Application servers: Specialized systems multiple CPUs and vast amounts of RAM.

Database servers: Specialized systems with fast and large hard drives.

SAP R/3 : 3 Tier Architecture
Presentation Layer components are installed across many PCs

The Application Layer components are installed across one or more highend servers. The Database Layer components are installed on high-end database server.
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Advantages of ERP
‡ ‡ ‡ ‡ Easy of use Readymade solutions for many problems. Dependency on Human resources eliminated. Suppliers and customers can be on-line communication ‡ Automatic adaptation to new technology.

In-house development:
‡ Project Development takes time. ‡ Documentation is difficult. ‡ Maintenance depends on individuals. ‡ EDI implementation modifications to be taken care of. ‡ Latest developments to be studied before implementation

ERP Package:
‡ Readymade projects ± Needs only customization. ‡ Documentation is part of system. ‡ Company takes care of this. ‡ EDI compatible. Universally accepted. ‡ Constant updates on technology and processes assured

‡ ERP Systems provide mechanism for implementing systems where a high degree of integration between applications is required. ‡ The business case or value proposition for implementation must be outlined. ‡ To successfully implement a proper mix of people, processes and technology should be maintained.

ERP Helps You!

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